SEC drops insider trading case against former Berkshire trader

Bailey McCann, Opalesque New York: The Securities and Exchange Commission (SEC) has opted not to file charges against David L. Sokol, a one-time top lieutenant at Omaha-based Berkshire Hathaway for insider trading. The news comes from Sokol's lawyer who released a statement Thursday.

Sokol was being investigated following his sudden resignation from Berkshire's MidAmerican Energy Holdings. The investigation was brought after it was revealed that Sokol purchased shares of another energy company Lubrizol, which Berkshire then acquired 2 months later.

Sokol's lawyer, Barry W. Levine, said that his client was always above board in his transactions and that he was glad the SEC had decided not to pursue any charges. Sokol was considered a leader in the firm and a possible successor to Warren Buffett who is 82, according to a Bloomberg account of the matter. Buffett defended Sokol's purchase and all of his trades, and was believed to be caught by surprise when Sokol resigned.